Category: Resources


Welcome to Florida: Buyer Pick or Seller Pick?

Here’s a little disclaimer Aaron M. Davis, CEO of Florida Agency Network, likes to give when speaking on title insurance in Florida.

“Florida, where a judgment can attach to a piece of property simply by filing a document with the clerk, and the name doesn’t even have to be spelled correctly.

Florida, where the county may or may not have to actually FILE an enforcement action on a property for it to attach, as long as they were thinking about doing it at some time.

Florida, where an unlicensed contractor can pull a permit on a house to put on a new roof, not close a permit, and 10 years later you have to hire a licensed contractor to go back, fix the prior’s work, and close the permit.

Florida, were the seller picks the title agent or attorney, and pays for title insurance, but only depending on the county you are in. Or, even depending on what PART of a county you’re in.”

Across the country, there are 37 states where the buyer picks/pays for title and 12 states where it’s customary for the seller to do so.

Then there’s Florida.

Where the Buyer picks in:

  • The Panhandle
  • Sometimes around the beach areas in Sarasota
  • South Manatee County (but only to the Manatee River, where North is customary for seller to pick)
  • Miami-Dade County
  • Broward County
  • Collier County
  • Some of Palm Beach County, but not North…..

Then, seller picks in the majority of the other areas…

HUH???

Title scholars, settlement experts, underwriting counsel, and others  who still say things like “HUD statements, policies in triplicate, dot matrix printers, and white out,” have contemplated WHY this occurs in Florida.

Well, Aaron has figured it out!  We can blame two men named Henry. (Of course, it’s a man’s fault.)

Henry Plant and Henry Flagler

These two gentlemen were railroad tycoons who ventured deep into Florida. The areas they ended up in became tourist destinations, with great beaches, water access, and lots of construction opportunities. Plant’s rail line landed in Sarasota, and Flagler’s line had a few stop down the East coast of Florida, landing in Palm Beach and Miami.

With all those tourists and construction came the attorneys who handled those transactions, several of who previously resided in New York. And in New York, you guessed it – it’s customary for the buyer to pick and pay for title.

As for coastal areas, well, those buyers are typically wealthy, so we guess they just get stuck with the bill.

The post Welcome to Florida: Buyer Pick or Seller Pick? appeared first on Florida Agency Network.

Source: Flagency


8 FAQs About Title Insurance

Contract

Buying a home is a large investment and can be intimidating. To have confidence in your purchase, it’s critical to get an owner’s title insurance. Below are eight common questions homebuyers have during the process. 

 

  1. What is title?

    1. Title is your right to own or use your property. Title also establishes any limitations on those rights. For a visual explanation, click HERE.
  2. What is a title search?

    1. A title search is an early step in the homebuying process to uncover issues that could limit your rights to the property. If a title issue is discovered, most often your title professional will take care of it without you even knowing. After the title search is complete, the title company can provide a title insurance policy.
  3. What is title insurance?

    1. There are two different types of title insurance: an owner’s policy and a lender’s policy. If you’re buying a home, title insurance, or owner’s title insurance/owner’s title policy, is a policy that protects your investment and property rights.
  4. What’s the difference between an Owner’s Title Policy and Lender’s Policy?

    1. Usually a lender’s policy is required by the chosen lender and only protects the lender’s financial interests. The buyer typically pays for this policy, but that varies depending on the area.
    2. An owner’s policy is the best way to protect your rights as the property owner. This is usually handled as an “optional” policy, but…….
  5. Who pays for title?

    1. Either the buyer or seller may pay for an owner’s policy. It’s best to ask your real estate and title professional on how it’s handled in your area.
  6. Why should I purchase owner’s title insurance?

    1. Owner’s title insurance protects your investment in your property from certain future legal claims regarding ownership of your property. For a one-time fee, you and your heirs* receive coverage for as long as you own your home. The owner’s policy also covers potential legal fees and court costs for settling claims covered by your policy.
  7. What does owner’s title insurance cover?

    1. Sometimes undiscoverable defects can come up after the title search. Under an owner’s title insurance policy, you are protected against certain undiscovered errors in the title.
    2. Title issues include unknown:
      1. Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
      2. Pending legal action against the property that could affect you
      3. Unknown heir of a previous owner who is claiming ownership of the property
    3. Unforeseeable title claims include:
      1. Forgery: making a false document
        1. For example, the seller misrepresents the identity of the person who sold the property.
      2. Fraud: deception to achieve unfair gain
        1. For example, someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.
      3. Clerical error: inconsistent paperwork and historical records
        1. For example, an unforeseeable discrepancy in the property or fence line can cause confusion in ownership rights.
  8. How long am I covered?

    1. The great news is your owner’s insurance policy lasts for as long as you or your heirs* own your property. Your life will change over time, but your peace of mind never will.

Want more information?

Tampa Bay Title  helps homebuyers like you understand the importance of title insurance, so you can protect your property rights. You can click here  to watch informational videos with helpful information on the homebuying process, or feel free to reach out to our team by clicking HERE.  We’re happy to help!